Saudi market regulator issues SAR 258 mln fines in 2020

Logo of CMA

Saudi market regulator, Capital Market Authority (CMA), issued 100 penalty decisions against 372 violators in 2020, of which 179 were top executives and 131 were investors, according to its annual report.

A total of 226 penalties were executed against violators in 2020, representing 61% of the total penalties, while the remaining ones are being imposed.

CMA’s Imposed Fines in 2020 by Violator
Violator	Total imposed fines	Total executed fines	Executed fines (%)
Top Executives	179	129	72.1%
Investors	131	49	37.4%
Registered/ licensed person	44	38	86.4%
Listed company	18	10	55.6%
Total	372	226	60.8%

The market regulator issued SAR 258.02 million fines in 2020, of which 14.7% or SAR 37.83 million were collected.

The decrease in the total sums collected is due to the issuance of a number of decisions by the appeal committee in large amounts during Q4 2020, and their collection is being done according to the followed regulations and procedures.

Investors were fined to the tune of SAR 242.03 million, with 11.4%, or SAR 27.7 million, collected last year.

Top executives were fined SAR 13.29 million, with 60.4%, or nearly SAR 8.03, collected in 2020.

Total Fines in 2020 by Violator (SAR mln)
Violator	Total imposed fines	Total collected fines	Collected amount/ total fine (%)
Investors	242.03	27.70	11.4%
Top Executives	13.29	8.03	60.4%
Registered person	--	--	--
Licensed person	2.29	2.01	87.8%
Listed company	0.41	0.09	22.0%
Total	258.02	37.83	14.7%

Penalties imposed for manipulation and fraud represented the majority of last year's fines, with 94.1%, or SAR 242.85 million. The market regulator collected SAR 29 million of those fines.

Total Fines in 2020 by Violation (SAR mln)
Violation	Total imposed fines	Total collected fines	Collected amount/ total fine (%)
Manipulation and fraud	242.85	29.00	11.9%
Governance regulations	6.07	1.78	29.3%
Corporate Law	2.89	2.58	89.3%
Capital market institutions regulations	2.25	2.20	97.8%
Registering & listing rules	1.50	1.50	100.0%
Practicing securities business without a license	1.38	0.26	18.8%
Trading during restriction period	0.37	0.32	86.5%
Rules of securities launching	0.32	0.09	28.1%
Rules of money laundering and terrorism financing	0.20	0.05	25.0%
Investment & real estate funds rules	0.12	0.04	33.3%
Disclosure	0.04	--	--
Rules of financial adequacy	0.02	0.02	100.0%
Insider Trading	--	--	--
Stake changes/acting without notifying the authority	--	--	--
Decisions, circulars of CMA’s board	--	--	--
List of securities launching	--	--	--
Rules of merger & acquisitions	--	--	--
Total	258.02	37.83	14.7%

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